government steps in: 2,000 public rental homes coming to metro region
The BC government is no longer just setting the rules of the game — it’s stepping directly onto the field.
On April 16, 2023, Metro Vancouver and BC Housing announced a joint plan to deliver 2,000 government-led affordable rental homes over the next decade. This billion-dollar commitment signals a major expansion of government involvement in the housing sector, particularly in the delivery of secure rental housing. For landowners and private developers, this highlights a clear shift: the province is a direct player, not just a policymaker.
what’s happening
The initiative will see the construction of 2,000 affordable homes across the Metro Vancouver region over ten years, beginning with five sites in Vancouver, Burnaby, Pitt Meadows, and Coquitlam. The first 660 units are already underway, with construction expected to begin in the near term.
Initial funding includes:
$158 million from the Province over three years
$217 million from Metro Vancouver in land and cash equity
Federal funding is also being pursued
Targeted tenants are those struggling with affordability — a growing segment of the population — and rents will be kept well below market rates.
what this means for private developers and owners
This isn’t a one-time investment. It’s part of a growing trend: government agencies are now competing directly with the private sector, using taxpayer-backed financing and land assets to deliver deeply subsidized housing. These projects are:
Fully capitalized, often on publicly owned land
Able to offer rents far below what market builders can deliver
Politically backed, with streamlined approvals and long-term public support
If you own land or build purpose-built rental, the landscape is shifting. Government-backed projects can distort land values, create price ceilings, and change tenant expectations. In some markets, they may even compete for the same construction trades and suppliers, tightening capacity and raising costs.
why it matters
The long-standing assumption that governments simply create policy frameworks and leave delivery to the private sector no longer holds. The BC government — through agencies like BC Housing and partnerships with Metro Vancouver — is now directly involved in land acquisition, project financing, and rental operations.
This presents a fundamental change in the development ecosystem. Rather than enabling private-sector solutions, the state is now building at scale and with long-term intentions. Private developers will need to adapt to a world where public entities are also landlords, builders, and competitors.
sites in the first wave
The first 660 units will be built on these five sites:
788 West 13th Avenue, Vancouver
7730 6th Street, Burnaby
7388 Southwynde Avenue, Burnaby
19085 119B Avenue, Pitt Meadows
1144 Inlet Street, Coquitlam
These are well-located parcels, and the development of these projects may influence zoning expectations, public sentiment, and the trajectory of future land use discussions in their respective submarkets.
final thoughts
Landowners and developers across Metro Vancouver should take note: the public sector is no longer on the sidelines. With deep capital reserves, policy control, and the political will to act, government-led development is poised to become a defining feature of the region’s housing market over the next decade.
Understanding how these shifts affect land value, project feasibility, and long-term investment strategy is critical. In a market where the rules — and now the players — are changing, proactive positioning is more important than ever.
Need help understanding how this affects your site?
Let’s talk about what this means for your development or investment strategy — and how to stay competitive as the ground shifts.
more about this topic
Current Opportunities
